Well, I did have this to post, but got distracted:
Making your fortune in the stock market
First, sell off all your material assets. This will be the initial source of your capital. Material assets make it difficult to relocate as the seasons change.
Then, Find a big cardboard box, preferably one designed for a large appliance, such as a refrigerator. Locate the large box under a bridge. One supporting steam conduits as a winter heat source would be ideal. The box will be your new home as you embark on your fund raising efforts. By lowering your living expenses, you'll free more of your income to invest.
Each day, as you pan handle for funds, invest half the proceeds in which ever stock fell the most that day. Use the other half to meet your other needs.
Let your losers run- they will be next years bigest winners.
Cut your winners short- you don't go broke taking a profit.
Invest in stocks for the long term- never sell your stocks as it's been proven that if you buy and hold for the right 10 year period, you might do better than investing in Real Estate or Bonds.
Never try to time the market. Just dollar cost average into the market using the results from your daily fund raising efforts.
The Efficient Market hypothesis shows that the market already accounts for all know facts in the price of the stocks at that instant. The market is smarter than you.
That's why stocks trade at 100 times what they earn, and often 30 times sales even though technology evolves so quickly as to obsolete their entire product line every 7 years.
And why stocks often fall 20, 30 or even 50% when they surprise the market with some fact that the market could have known, but didn't bother to find out.
Never miss an annual meeting, even if that means riding the train half way across the country. These meetings are often the source of insight into a company and industry you can't otherwise achieve, and often have yummie cookies and coffee.
Rest easy in front of your evening campfire, assured that you won't get rich working for someone else and saving your hard earned dollars the way your grandparents did. You may appear a bum to some people, but in reality you are a self directed individual investor. |
